Adelaide Brighton Limited (ABC)
Adelaide Brighton, established in 1882, is one of Australia’s leaders in the production and supply of construction materials, notably cement and lime. In addition, its Hy-Tec operation and its Mawson Group joint venture are suppliers of premixed concrete and it has a business as a supplier of aggregates. The Adbri Masonry operation is a leading producer of concrete masonry products.
Adelaide Brighton is a key supplier to the construction and resources industries, and its fortunes are heavily dependent on trends in these sectors. It sees demand for concrete continuing to rise as major new infrastructure projects and office tower developments come on-stream in east coast and South Australian markets. It is also benefiting from a slow recovery in Western Australia, after some years of decline. Thanks to strong demand for its products, it has been able to raise prices.
It continues to seek out acquisitions that will help it diversify. It is also building new facilities, including a concrete plant in Brisbane and a hard-rock quarry in Gympie, Queensland. However, it imports some of its products and is hurt by a weaker dollar. It is also negatively affected by rising energy costs, which it expects to add $6 million to its costs during 2018. In response, it is working to mitigate this with operational improvements and moves to alternative fuels. In 2013, Adelaide Brighton initiated the process of selling surplus land and over the coming 10 years it anticipates realising some $100 million in sales.